Cannabis companies plan to offer several products across various formats to access a share in several user experiences. For example, in its announcement related to 100 SKUs (stock keeping units), Canopy Growth (WEED) (CGC) said that its line of cannabis products will include multiple formats such as dried flower, pre-rolled joints, softgel capsules, and oils.
Dried flower and pre-rolled joints have traditionally been the preferred format for consuming cannabis. Softgel capsules were primarily available to medical patients (HMMJ) by prescription. The legalization of cannabis allows the possibility of offering new formats and products to recreational customers that have only been available to medical users.
Recreational cannabis legalization gives companies with bigger wallets an opportunity to innovate products that can be sold legally to customers. In its recent MD&A (management discussion and analysis), Canopy Growth said it’s actively pursuing a value-added market cannabis product for the recreational market, which will include edibles, beverages, and higher concentrated vaping oils. The company has already advanced itself into the beverage market with its partnership with Constellation Brands (STZ), the maker of Corona beer.
An example of a new format that’s already in the making is beverages infused with cannabis products. They include non-alcoholic beverages and infused teas and coffee. For innovation in cannabis-based edibles, the sky seems to be the limit.